Retirement Benefits Act

Section 1. Short title Section This Act may be cited as the Retirement Benefits Act.

Section 2. Interpretation Section In this Act, unless the context otherwise requires— “actuary” means a person who is a Fellow of the Institute of Actuaries in England, or the Faculty of Actuaries in Scotland, or the Canadian Institute of Actuaries, or the Society of Actuaries of the United States of America or the Institute of Actuaries of Japan or the Institute of Actuaries of Australia or a person holding such equivalent qualification as the Board may, by notice in the Gazette , prescribe; “administrator” means a person appointed by trustees to administer a scheme in accordance with such terms and conditions of service as may be specified in the instrument of appointment; “authority” means the Retirement Benefits Authority established by section 3 ; “Board” means the Board of Directors of the Authority constituted under section 6 ; “Cabinet Secretary” means the Cabinet Secretary for the time being responsible for matters relating to Finance; “Chief Executive Officer” means the Chief Executive Officer of the Authority appointed under section 11 ; "corporate trustee" means a limited liability company incorporated under the Companies Act ( Cap. 486 ), which is, for the time being,...

Section 3. Establishment and incorporation of the Retirement Benefits Authority Section 3(1) There is established an Authority to be known as the Retirement Benefits Authority. Section 3(2)(a) suing and be sued; Section 3(2)(b) taking, purchasing or otherwise acquiring, holding, charging or disposing of movable and immovable property; Section 3(2)(c) borrowing or lending money; and Section 3(2)(d) doing or performing all other things or acts for the furtherance of the provisions of this Act, which may be lawfully done or performed by a body corporate.

Section 4. Headquarters Section The headquarters of the Authority shall be in Nairobi.

Section 5. Object and functions of the Authority Section regulate and supervise the establishment and management of retirement benefits schemes;

Section 6.Boardof Directors Section a chairperson to be appointed by the Cabinet Secretary from amongst the members appointed under paragraph (f) ;

Section 7. Powers of theBoard Section control, supervise and administer the assets of the Authority in such manner and for such purposes as best promote the purpose for which the Authority is established;

Section 8. Conduct of business and affairs of theBoard Section The conduct and regulation of the business and affairs of the Board shall be as provided in the Schedule but subject thereto, the Board shall regulate its own procedure.

Section 9. Delegation by theBoard Section The Board may, by resolution either generally or in any particular case, delegate to any committee of the Board or to any member , officer, employee or agent of the Authority, the exercise of any of the powers or the performance of any of the functions or duties of the Authority under this Act or under any other written law.

Section 10. Remuneration ofBoardmembers Section The Authority, in consultation with the Cabinet Secretary shall pay members of the Board such remuneration, fees or allowances for expenses as it may determine.

Section 11. TheChief Executive Officer Section 11(1) There shall be a Chief Executive officer who shall be appointed by the Board in consultation with the Cabinet Secretary and whose terms and conditions of service shall be determined by the Board in the instrument of appointment or otherwise in writing from time to time. Section 11(2) No person shall be appointed under this section unless he has at least ten years experience in a managerial capacity in the retirements benefits, accounting, finance, insurance or the banking sectors. Section 11(3) The Chief Executive Officer shall be an ex officio member of the Board but shall have no right to vote at any meeting of the Board . Section 11(4) The Chief Executive Officer shall, subject to the directions of the Board , be responsible for the day to day management of the affairs of the Authority.

Section 12. Staff of the Authority Section 12(1) The Board shall appoint a secretary to the Board on such terms and conditions of service as the Board may determine. Section 12(2) The Board may appoint such officers or servants as are necessary for the proper discharge of the functions of the Authority under this Act or any other written law, upon such terms and conditions of service as the Board may determine.

Section 13. The Common Seal of the Authority Section 13(1) The common seal of the Authority shall be kept in such custody as the Board may direct and shall not be used except on the order of the Board . Section 13(2) The common seal of the Authority when affixed to a document and duly authenticated shall be judicially and officially noticed and unless and until the contrary is proved, any necessary order or authorisation by the Board under this section shall be presumed to have been duly given.

Section 14. Protection from personal liability Section No matter or thing done by a member of the Board or any officer, employee or agent of the Authority shall, if the matter or thing is done bona fide for executing the functions, powers or duties of the Authority, render the member , officer, employee or agent or any person acting on their directions personally liable to any action, claim or demand whatsoever.

Section 15. Liability of the Authority for damages Section The provisions of this Act shall not relieve the Authority of the liability to pay compensation or damages to any person for any injury to him, his property or any of his interest caused by the exercise of any power conferred by this Act or any other written law or by the failure, whether wholly or partially, of any works.

Section 16. The Retirement BenefitsLevy Section 16(1) The Cabinet Secretary may, in consultation with the Board , by order published in the Gazette , impose a levy to be known as the Retirement Benefits Levy on the contributions made to scheme funds, or on the assets of such funds, or on such other base as he may determine. Section 16(2) A levy imposed under this section shall be payable at such rate as may be specified in the order. Section 16(3) An order under this section may contain provisions as to the time at which any amount payable by way of the levy shall become due. Section 16(4) All moneys received in respect of the levy shall be paid into the Fund and if not paid on or before the date prescribed by the order, the amount due and any sum payable under subsection (5) shall be a civil debt recoverable summarily by the Authority. Section 16(5) If a person fails to pay any amount payable by him by way of the levy on or before the date prescribed by the order, a sum equal to five per centum of the amount shall be added to the amount due for each month or part thereof during which the amount due remains unpaid.

Section 17. The Retirement Benefits AuthorityFund Section 17(1) There is established a fund to be known as the Retirement Benefits Authority Fund which shall vest in the Authority. Section 17(2)(a) all proceeds of the levy established by section 16 ; Section 17(2)(b) such moneys or assets as may accrue to or vest in the Authority in the course of the exercise of its powers or the performance of its functions under this Act; Section 17(2)(c) such sums as may be payable to the Authority pursuant to this Act or any other written law, or pursuant to any gift or trust; Section 17(2)(d) such sums as may be granted to the Authority by the Cabinet Secretary pursuant to subsection (3) ; and Section 17(2)(e) all moneys from any other source provided for or donated or lent to the Authority. Section 17(3) There shall be made to the Authority out of moneys provided by Parliament for that purpose, grants towards the expenditure incurred by the Board in the exercise of its powers of the performance of its functions under this Act.

Section 18. Investment of funds of the Authority Section 18(1) The Authority may invest any of its funds in securities which for the time being trustees may by law invest trust funds, or in any other securities which the Treasury may, from time to time, approve. Section 18(2) The Authority may place on deposit with such bank or banks as it may determine, any moneys not immediately required for the purposes of the Authority.

Section 19. Financial year Section The financial year of the Authority shall be the period of twelve months ending on the thirtieth June in each year.

Section 20. Annual estimates Section 20(1) Before the commencement of each financial year , the Board shall cause to be prepared estimates of revenue and expenditure of the Authority for that year. Section 20(2)(a) the payment of the salaries, allowances and other charges in respect of the staff of the Authority; Section 20(2)(b) the payment of pensions, gratuities and other charges in respect of the retirement benefits which are payable out of the funds of the Authority; Section 20(2)(c) the proper maintenance of the buildings and grounds of the Authority; Section 20(2)(d) the maintenance, repair and replacement of the equipment and other property of the Authority; Section 20(2)(e) the creation of such reserve funds to meet future or contingent liabilities in respect of retirement benefits, insurance or replacement of buildings or equipment, or in respect of such other matter as the Board may deem appropriate. Section 20(3) The annual estimates shall be prepared at least three months before commencement of the financial year to which they relate and shall be submitted to the Board for approval and after such approval, the Authority shall not increase the annual estimates without t...

Section 21. Accounts and audit Section 21(1) The Authority shall cause to be kept all proper books and records of account of the income, expenditure and assets of the Authority. Section 21(2)(a) a statement of income and expenditure during that year; and Section 21(2)(b) a statement of the assets and liabilities of the Authority on the last day of that year. Section 21(3) The accounts of the Authority shall be audited and reported upon in accordance with the Public Audit Act ( Cap. 412B ) by the Auditor-General.

Section 5A. Assistance in investigation Section 5A(1)(a) are enforced or administered by that regulatory body; or Section 5A(1)(b) relate to transactions regulated by that regulatory body, Section 5A(2) For the purposes of subsection (1) , the provisions of this Act shall, with such modifications as may be necessary, apply and have effect as if the contravention of the legal or regulatory requirement referred to in subsection (1) were an offence under this Act. Section 5A(3)(a) it is desirable or expedient that the assistance requested should be provided in the interest of the public; or Section 5A(3)(b) the assistance shall assist the regulatory body in the discharge and performance of its functions. Section 5A(4)(a) pay the Authority any of the costs and expenses incurred in providing the assistance; and Section 5A(4)(b) be able and willing to provide reciprocal assistance within its jurisdiction in response to a similar request for assistance from Kenya. Section 5A(5) Nothing in this section shall be construed as limiting the powers of the Authority to co-operate or co-ordinate with any other regulatory body in the exercise of its powers under this Act, in so far as any such co-...

Section 5B. Authority may investigate Section 5B(1)(a) an offence has been committed under this Act; or Section 5B(1)(b) a manager , custodian , trustee or an administrator may have engaged in embezzlement, fraud, misfeasance or other misconduct in connection with its regulated activity; or Section 5B(1)(c) the manner in which a manager , custodian , trustee or an administrator has engaged or is engaging in the regulated activity is not in the interest of the person's clients or in the public interest, the Authority shall in writing depute a suitably qualified person to conduct investigations into the matter on behalf of the Authority. Section 5B(2)(a) to produce to the investigator, within such time and at such place as the investigator may require in writing, any record or document specified by the investigator which is, or may be, relevant to the investigation, and which is in the possession or under the control of that person; Section 5B(2)(b) to give an explanation or further particulars in respect of any record or document produced under paragraph (a) ; Section 5B(2)(c) to attend before the investigator at the time and place specified in writing by the investigator, and to th...

Section 7A. Powers of anti-money laundering and countering the financing of terrorism purposes Section 7A(1) Pursuant to sections 2A , 36A , 36B and 36C of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ), the Authority shall regulate, supervise and enforce compliance for antimoney laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Authority and to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ) apply. Section 7A(2)(a) vet proposed significant shareholders, proposed beneficial owners, proposed directors and senior officers of a reporting institution; Section 7A(2)(b) conduct onsite inspection; Section 7A(2)(c) conduct offsite surveillance; Section 7A(2)(d) undertake consolidated supervision of an institution and its group; Section 7A(2)(e) compel the production of any document or information the Authority may require for the purpose of discharging its supervisory mandate under the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ); Section 7A(2)(f) impose monetary, civil or administrative sanctions for violatio...

Section 7B. Penalties for violations relating to money laundering andterrorism financing Section 7B(1) No member , manager , custodian , administrator or any other person in a scheme or scheme fund shall violate or fail to comply with the regulations, guidelines, directions, rules or instructions issued for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes. Section 7B(2)(a) in case of a legal person, to a penalty not exceeding five million shillings; Section 7B(2)(b) in the case of a natural person, to a penalty not exceeding one million shillings; and Section 7B(2)(c) to additional penalties not exceeding one hundred thousand shillings in each case for each day or part thereof during which such violation or non-compliance continues.

Section 22. Retirement benefits schemes, managers, corporate trustees, custodians and administrators to be registered Section 22(1) No person shall establish a retirement benefits scheme except in accordance with the provisions of this Act and under the authority of a certificate issued under this Act. Section 22(2) No person shall act as a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator unless such person is registered under this Act and holds a valid certificate of registration issued pursuant to the provisions of this Act. Section 22(2A) The provisions relating to administrators under subsection (2) shall not apply to natural persons who are employees of a scheme. Section 22(3) The Authority shall, in consultation with the Cabinet Secretary , by notice in the Gazette and by public advertisement in at least one daily newspaper of wide circulation, publish a list of all registered...

Section 23. Registration Section 23(1) A person proposing to establish a retirement benefits scheme or to act as a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , a custodian or an administrator shall apply to the Authority for, and obtain, a certificate of registration before establishing the scheme or commencing the performance of any of the functions of a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , a custodian or an administrator . Section 23(2)(a) addressed to the Chief Executive Officer ; Section 23(2)(b) in the prescribed form; and Section 23(2)(c) accompanied by the prescribed fee. Section 23(3) In considering an applicatio...

Section 24. Requirements for registration of schemes Section 24(1)(a) it is proposed to be established under an irrevocable trust; and Section 24(1)(b) the proposed scheme rules adequately protect the rights and interests of the sponsors and members thereof. Section 24(2) No scheme shall be registered under this Act unless the trustees thereof satisfy the requirements specified in section 26 .

Section 25. Requirements for registration of managers and custodians Section is a limited liability company incorporated under the Companies Act ( Cap. 486 ) whose liability is limited by shares and whose main object is to manage scheme funds;

Section 26. Requirements with regard to trustees Section 26(1) Every scheme , other than a scheme established by a written law shall be established under an irrevocable trust. Section 26(2)(a) has been sentenced to imprisonment by a court of competent jurisdiction for a period of six months of more; Section 26(2)(b) is adjudged bankrupt; Section 26(2)(c) was previously involved in the management or administration of a scheme which was deregistered for any failure on the part of the management or the administration thereof; Section 26(2)(d) is disqualified under any other written law, or his holding office as such is deemed by the Authority as being, in any way, detrimental to the scheme ; or Section 26(2)(e) does not comply with the guidelines or practice notes issued by the Authority. Section 26(3) Not withstanding the provisions of subsection (2) , the appointment of any person as a trustee shall be subject to approval by the Authority.

Section 27. Refusal of registration Section 27(1)(a) the information contained in the application for registration is false or untrue in any material particular; or Section 27(1)(b) the applicant does not meet the requirements for registration. Section 27(2) Where the Authority refuses to register any scheme , manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , or custodian , it shall forthwith notify the applicant in the prescribed form, specifying the reasons for such refusal.

Section 28. Deregistration Section 28(1)(a) it discovers after registration that a statement was made in connection with the application therefore which the applicant knew to be false or untrue in any material particular; or Section 28(1)(b) the scheme is wound up or is otherwise dissolved; or Section 28(1)(c) the scheme does not conform to the provisions of this Act or any regulations made or directions issued under this Act or any condition of the certificate of registration. Section 28(2) The Authority shall, before deregistering a scheme , give the trustees, sponsors and members of the scheme at least twenty-eight days notice of its intention and shall consider any representations made to it in writing by the trustees, sponsors or members within that period before deregistering the scheme . Section 28(3)(a) it discovers after registration that the manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian...

Section 29. Duration and renewal of certificates Section 29(1) Subject to this Act, a certificate of registration issued in respect of a scheme shall be valid from the date of issue and shall remain in force until the scheme is deregistered or wound up in accordance with the scheme rules or the provisions of the written law under which the scheme is established. Section 29(2) A certificate of registration issued to a manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator shall be valid from the date of issue and shall, unless suspended or revoked, remain valid. Section 29(3) A manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corpora...

Section 30. Register Section 30(1) The Chief Executive Officer shall keep a register in such form as the Board may determine, of all schemes, managers, corporate trustees, custodians and administrators registered under this Act and shall enter therein, in respect of the schemes, managers, corporate trustees and custodians, such particulars as the Board may specify. Section 30(2) The Board may determine the time or times during which, and the extent to which any person may, on payment of the prescribed fee, inspect the register kept under this section or obtain copies thereof. ( Act No. 7 of 1998 , s. 10, Act No. 2 of 2006 , s. 11, Act No. 8 of 2021 , s. 67)

Section 31. Use of register in evidence Section 31(1) For the purposes of ascertaining the facts concerning the registration of a scheme , manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator , entries made in the register shall be prima facie evidence as to the facts specified in the register. Section 31(2) A document certified by the Chief Executive Officer as a true copy or extract from the register shall be admissible in any court as prima facie evidence of the contents of the register.

Section 22A. Criteria for suitability Section 22A(1)(a) financial status or solvency of the person; Section 22A(1)(b) educational or other qualifications or experience of the person, having regard to the nature of the functions which, if the application is granted, the person shall perform; Section 22A(1)(c) status of any other licence or approval granted to the person by any financial sector regulator; Section 22A(1)(d) ability of the person to carry on the regulated activity competently, honestly and fairly; and Section 22A(1)(e) in the case of a natural person, of that individual; or Section 22A(1)(e)(i) in the case of a natural person, of that individual; or Section 22A(1)(e)(ii) in the case of a company, of the company, its chairperson, directors, chief executive, management and all other personnel including all duly appointed agents, and any substantial shareholder of the company, if the chairperson, director, chief executive, management or the personnel are shareholders of the company. Section 22A(2)(a) has contravened the provision of any law, in Kenya or elsewhere, designed for the protection of members of the public against financial loss due to dishonesty, incompetence,...

Section 25A. Requirements for registration of custodians Section is a limited liability company incorporated under the Companies Act ( Cap. 486 ) whose main function is to perform the functions of a custodian within the meaning of this Act;

Section 25B. Requirements for registration of administrators Section 25B(1)(a) is a limited liability company incorporated under the Companies Act ( Cap. 486 ), whose liability is limited by shares and whose main objective is to render administrative services to schemes; Section 25B(1)(b) has such minimum paid up share capital as may, from time to time, be prescribed; Section 25B(1)(c) is capable of meeting the obligations to members and sponsors specified in the scheme rules ; Section 25B(1)(d) has the professional and technical capacity and adequate operational systems to perform it’s functions; Section 25B(1)(e) has never been an administrator of any scheme fund which has been either deregistered, wound up or placed under an interim administrator due to any fault, either fully or partially, of the administrator ; Section 25B(1)(ee) has in its Board of Directors and top management such number of persons as may be prescribed who are academically and professionally qualified in matters relating to administration of schemes, insurance, law, accounting, actuarial science, economics, banking, finance or investment of scheme funds; Section 25B(1)(eb) has at least thirty three percent o...

Section 25C. Requirements for the registration of corporate trustees Section has such minimum paid up share capital as may be prescribed by the Authority;

Section 32. Scheme funds Section 32(1) There shall be, in respect of every scheme other than a scheme fully funded out of the Consolidated Fund , a scheme fund into which all contributions, investment earnings, income and all other moneys payable under the scheme rules or the provisions of this Act shall be paid. Section 32(2) The scheme fund and all monies therein shall at all times be maintained separately from any other funds under the control of the trustees or the manager thereof. Section 32(3) Subject to the provisions of this Act, the Cabinet Secretary may, in consultation with the Authority, make regulations with regard to the funding, vesting, custody, management, application and the transfer of scheme funds and the accounting for such funds.

Section 33. Statutory contributions Section 33(1) Notwithstanding the provisions of any written law for the time being in force, an employer may, with the approval of his employees, pay any statutory contributions in respect of such employees into any scheme fund prescribed for that purpose: Provided that where such payment involves a transfer of funds from another scheme fund , the employer shall, at least sixty days before commencing such payment, give written notice thereof to the Authority and to the trustees of the scheme fund from which such funds shall be transferred. Section 33(2) In this section, the expression “statutory contributions” means contributions required under the provisions of a written law to be paid into a retirement benefits scheme .

Section 34. Annual report and accounts Section 34(1) The trustees of every scheme shall cause to be kept all proper books and records of account of the income, expenditure and assets of the scheme fund . Section 34(2)(a) statement of assets and liabilities; Section 34(2)(b) a statement of income and expenditure; Section 34(2)(c) a statement of the assets and liabilities of the scheme as on the last day of that year; and Section 34(2)(d) such other documents as may be prescribed. Section 34(3) The accounts of the scheme fund in respect of each financial year shall be audited by an auditor appointed by the trustees with the approval of the Board : Provided that the appointed auditor shall not be a member , trustee or sponsor of the scheme . Section 34(4) Within three months after the end of each financial year , the trustees shall submit a copy of the audited accounts of the scheme to the Chief Executive Officer . Section 34(4A) A trustee who fails to submit a copy of the audited accounts, in respect of a scheme , to the Chief Executive Officer pursuant to subsection (4) commits an offence and shall be liable, on conviction, to a fine not exceeding five hundred thousand shillings, or...

Section 35. Actuarial evaluations Section 35(1) The Board may require the trustees of such schemes or categories of schemes as it may specify, to cause the schemes to be evaluated by an actuary appointed by the trustees with the approval of the Board and to present the actuarial report to the Chief Executive Officer at such regular intervals as the Board may specify. Section 35(2) A trustee who fails to submit a copy of the actuarial report to the Chief Executive Officer by the due date specified in the regulations shall pay a penalty of one hundred thousand shillings. Section 35(3) Where the report remains unsubmitted, the trustee , in addition to the penalty specified under subsection (2) , shall pay a further penalty of one thousand shillings for each day or part thereof during which the report remains unsubmitted.

Section 36. Protection against attachment Section Notwithstanding anything to the contrary contained in any other written law, where a judgement or order against a member of a scheme is made, no execution or attachment or process of any nature shall be issued in respect of the contributions or funds of the member or his employer except in accordance with the scheme rules and such contributions shall not form part of the assets of the member or of his employer in the event of bankruptcy.

Section 37. Investment ofschemefunds Section 37(1) Every scheme shall have a prudent investment policy on the investment of the funds of the scheme so as to maintain the capital funds of the scheme and generally to secure market rates of return on such investment: Provided that a scheme with a fund value of one hundred million Kenya shillings or less may invest up to one hundred per centum of its scheme funds in Government securities. Section 37(2) Notwithstanding the provisions of any other written law, the investment policy of a scheme shall be implemented subject to any regulations the Cabinet Secretary may, in consultation with the Authority, make for that purpose. Section 37(3) There shall be submitted to the Chief Executive Officer , in respect of every scheme , a statement of all investments of the scheme fund , in such form, manner and at such intervals as may be prescribed. Section 37(4) Where scheme funds are invested in a guaranteed fund asset class, the approved issuer shall, upon termination of the relevant agreement, transfer the funds out of the asset class within twelve months, or such other shorter period as may be specified in the instrument of appointment.

Section 38. Restriction on use ofschemefunds Section 38(1)(a) used to make direct or indirect loans to any person; Section 38(1)(b) invested contrary to any guidelines prescribed for that purpose; or Section 38(1)(c) invested with a bank, non-banking financial institution, insurance company, building society or other similar institution with a view to securing loans, at a preferential rate of interest or for any other consideration to the sponsor , trustees, members or the manager of such scheme , Section 38(1A) Notwithstanding the provisions of subsection (1) , a prescribed proportion of the benefits accruing to a member in a scheme may be assigned and used by the member to secure a mortgage loan or to purchase a residential house from such institutions and on such terms as may be prescribed in regulations made by the Cabinet Secretary. Section 38(1A) Subject to subsection (1)(b) , where a fund is set up exclusively for the purpose of investing sharia complaint funds, the fund shall be exempted from the guidelines. Section 38(2) The Authority may disqualify a person who acts in contravention of the provisions of this section from participating in any way in the management custody...

Section 39. Unsafe and unsound practices Section 39(1) Where, in the opinion of the Chief Executive Officer , a trustee , manager , custodian or administrator of a scheme is pursuing an act or course of conduct which the Chief Executive Officer considers to be an unsafe or unsound practice, or in any way detrimental to the scheme , the Chief Executive Officer shall, by notice in writing, direct such trustee , manager , custodian or administrator to refrain from pursuing such act or course of conduct. Section 39(2) A trustee , manager or custodian who acts in contravention of a direction under this section commits an offence and shall be liable, on conviction, to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding two years, or to both.

Section 40. General obligations of trustees and managers Section ensure that the scheme fund is at all times managed in accordance with this Act, any regulations made thereunder, the scheme rules and any directions given by the Chief Executive Officer ;

Section 36A. Treatment of death benefits Section Upon the death of a member of a scheme , the benefit payable from the scheme shall not form part of the estate of the member for the purpose of administration and shall be paid out by the trustees in accordance with the scheme rules . ( Act No. 9 of 2007 , s. 72)

Section 41. Inspection Section 41(1) The Chief Executive Officer may, at any time and from time to time, and shall, if so directed by the Board , cause an inspection to be made by an inspector authorized by him in writing, of any scheme or of the business of any manager , corporate trustee ("a limited liability company incorporated under(), which is, for the time being, empowered under any written law, its charter, memorandum of association, deed of settlement or other instrument constituting it or defining its powers to mainly undertake trusts, and includes a trust corporation;") , custodian or administrator registered under this Act, and of it’s books, accounts and records. Section 41(2) When an inspection is made under subsection (1) , the manager, corporate trustee, custodian or administrator of the scheme concerned and every officer, trustee or employee thereof shall make available to the inspector all the books, accounts records and other documents of the scheme and such correspondence, statements and information relating to the scheme as the inspector may require, within seven days or such longer period as the inspector may direct in writing. Section 41(3)(a) the books, acco...